ClearToken taps Canton Network tech to debut FCA-approved institutional DAPs

ClearToken Group, founded in 2022, now an FCA-authorized digital financial market infrastructure (FMI) provider, has added three institutional DAPs to the market. This comes in partnership with Canton Network.

According to the official announcement, the launch adds CT Register, CT Pay, and CT Settle to the crypto ecosystem, which remains in a market downturn. 

According to Benjamin Santos-Stephens, CEO of ClearToken, “CT Register, CT Pay and CT Settle deployed on Canton give institutions the regulated end-to-end settlement stack they need to unlock tokenisation, by providing PvP payment certainty and DvP finality of settlement across every form of digital money.”

ClearToken’s launch on the Canton Network, which boasts an institutional ecosystem that includes DTCC, Goldman Sachs, Euroclear, LSEG, and Tradeweb, places it at the nexus between regulated FMI and the institutional standard for blockchain.

ClearToken plans three digital asset platforms

As per the released roadmap, CT Register covers tokenization and de-tokenization of fiat, stablecoins, and securities. However, the inclusion of securities is planned to happen down the line.

Then there is CT Pay, which includes payments and PvP (payment versus payment) settlement. The latter is the stablecoin equivalent of CLS. This would remove Herstatt risk from cross-currency transactions.

Finally, CT Settle handles FCA-authorized DvP (delivery vs. payment) net settlement in fiat, as well as DvP and net settlement in crypto assets and stablecoins. 

According to market statistics, daily trade in the global foreign exchange market is $9.6 trillion, whereas CLS processed a record $22.9 trillion in gross FX payment instructions in a single day. The products target a stablecoin market with a capitalization exceeding $318 billion.

ClearToken seeks further approval from the Bank of England

London-based ClearToken has said it plans to seek further approval from the Bank of England to expand operations in the clearing and margining sectors through the latter’s Digital Securities Sandbox.

This comes after the UK Financial Conduct Authority approved the launch of a regulated settlement system for digital assets towards the end of last year. The move comes amid the UK’s plans to close the gap with America and Europe.

According to ClearToken, the plan is “to bring trust, transparency, and operational rigour to an evolving digital asset ecosystem.”

Stablecoins market takes an interesting market shift: ECB

As per the research report published by the European Central Bank in March, there is an increased adoption of stablecoins that will cause a decrease in bank deposits and change the course of bank lending. 

It also established that the adoption of stablecoins has significant effects on the monetary policy. The ECB also sheds light on the effects of adopting foreign currency stablecoins on the concept of monetary sovereignty.

According to the data, the funds could go into financing the US through its treasuries instead of the EU states. The data is worse, given the green transition and the increased defense spending the EU wants to finance.

US states are filling this gap with better regulations. As reported by Cryptopolitan, Florida has moved closer to establishing its own state-level stablecoin regulatory framework after the State Senate approved Senate Bill 314.

Block CEO Jack Dorsey has taken a keen interest in this market trajectory. According to a recent interview with WIRED, he asserts that “I don’t like that we’re going to support stablecoins, but our customers want to use them. I don’t think it’s wise to go from one gatekeeper to another.”

Payment platform competitors, including Stripe and PayPal, have already integrated stablecoin infrastructure, putting pressure on Block to do the same.

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